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Cash v trade in price

  • 09-12-2014 4:19pm
    #1
    smurfette2212
    Registered Users Posts: 197 ✭✭


    Possibly a very straight forward question, but can't wrap my head around this... Hopefully someone can explain! I'm looking at a second hand car, and the price advertised as without a trade-in is cheaper than the price with a trade-in. Does this make sense? Or am I being completely dense...


Comments

  • #2
    Bpmull
    Closed Accounts Posts: 5,042 ✭✭✭Bpmull


    That's the way most dealers are. The trade in price is higher as they have to sell on your trade in before they've got all their money as such. Whereas buying straight they can afford to give a bit extra off. Often times your better of to sell your own car yourself privately and then buy the car of the dealer straight. But that's not always the case it depends on what the dealer is offering for your car and how popular it is.


  • #3
    yop
    Moderators, Home & Garden Moderators, Regional Midwest Moderators, Regional West Moderators Posts: 16,724 Mod ✭✭✭✭yop


    smurfette2212 wrote: »
    Possibly a very straight forward question, but can't wrap my head around this... Hopefully someone can explain! I'm looking at a second hand car, and the price advertised as without a trade-in is cheaper than the price with a trade-in. Does this make sense? Or am I being completely dense...

    yip makes sense, they have a "washout" on a trade-in so that the price is higher, they probably need to spend money on your car to make it saleable, they take that into account when they are advertising.


  • #4
    bazz26
    Registered Users, Registered Users 2 Posts: 51,297 ✭✭✭✭bazz26


    The cash price advertised is normally a discounted price for not trading in another car. So if you have a trade-in the price of the other car will be based on the pre discounted price.


  • #5
    Mr Detail
    Registered Users Posts: 107 ✭✭Mr Detail


    In theory is always nicer to sell your own car first and have the cash in hand but sometimes the bloody hassle ain't worth the difference. Dealers always have a little movement so make sure you consider that as well.


  • #6
    smurfette2212
    Registered Users Posts: 197 ✭✭smurfette2212


    Thank you all so much for explaining! I understand now, so I appreciate the replies.


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